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>Look in Files Section - Listing Dow Waves by Gerard Carey excellent.
No disrespect to Gerard Carey but I don't rate this as an excellent
TA study. It is the start of an interesting discussion and I do thank
Gerard for sharing it.
As I pointed out to Gerard at the time, the Dow Indicator entry
signals are very similar to an Inverse Reversion To Mean System,
which is bread and butter in the industry.
They always look great on a chart with a longer than average trend in
place (which obviously occurs less than 50% of the time).
>From memory, if you look at Gerard's example chart of the Dow
Indicator plotted on the ^DJI it makes 12 - 13 successive touches of
a bullish MA.
My propostion regarding waves, or cycles, is that if you measure
their frequency, and magnitude, you can expect to get a lot of
variance and something approaching a bell curve if they are
distributed (either frequency or magnitude).
So 12 - 13 successive touches of a bullish MA that continue on to a
higher high is not something that happens all that frequently.
To provide some balance look at the same indicator on some other
charts, or better still backtest it to obtain a larger dataset.
If we could predict when a stock, or any other instrument, is going
into a long term trend (cf a short term trend) we wouldn't need any
other indicators at all.
brian_z
--- In amibroker@xxxxxxxxxxxxxxx, "areehoi" <areehoi@xxx> wrote:
>
>
> Look in Files Section - Listing Dow Waves by Gerard Carey
excellent.
>
> Dick H.
>
> --- In amibroker@xxxxxxxxxxxxxxx, "greenhorn1983" <greenhorn1983@>
> wrote:
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "MarkK" <MailYahoo@> wrote:
> > >
> > > Was curious if anyone had written an ALF for Dow theory trades
as of
> > yet?
> > >
> > >
> > > MarkK
> > >
> >
> > i've also been thinking about it lately :)
> >
>
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